Source: www.gochinaauto.com (http://www.gochinaauto.com/)
http://www.gochinaauto.com/uploads/photos/4888.jpg
Dongfeng-Renault’s new cooperation plan failed

The proposed joint venture cooperation plan between Dongfeng and Renault has reportedly stopped again. The two big automakers have been in talks for many years for localize Renault cars in China, but have repeatedly had various setbacks. Currently Renault only imports some CBU models into China and it was reported that the nearest market launch will be Renault Koleos SUV.

Several reasons lead to the eventual fail. Firstly Dongfeng has to put more effort on its own independent brand developing due to political reasons. Dongfeng is the last among all big automakers especially under its major competitors in China, FAW and SAIC. Since Donfeng has 5 partners in China, there is no much motivation for the local automaker to launch new cooperation with a new partner even Renault is not new.

Secondly the venue of plant also became an issue during the negotiation. There is always a GDP issue when defining there to build up the plants. To localize Renault model in Hubei province (where locates Dongfeng headquarter, mid-China) or in Guangdong (where Nissan and its suppliers locates) is the most controversial issue. Maybe to fail the project is the best choice for Dongfeng at last.

The last the most important is the uncertainty of Renault's future. Renault is importing its products in China but the sales is very limited so far. Since 2000 competition in China auto market becomes more and more fierce. A project has to be reviews several times with the environment changing every day. People will have to doubt the future of this French brand and actually compared with their fashion and perfume Chinese do not accept much French automotives.